Concept explainers
Using a spreadsheet generate your own set of Discount and
Tables for, say, all discount rates between 1% and 20% (at 1 percentage
point intervals) and for time periods 1 to 30 (at one time period
intervals), as well as time periods 50 and 100. You should generate these
tables by inserting the numbers for the time periods in the first column
of each row and the discount rates in the first row of each column, and
then inserting the appropriate formula into one cell of the table – year 1
at 1% - and then copying it to all other cells in the matrix. (Hint: Do not
forget to anchor the references to periods and discount rates using the
“$” symbol.)
Answer: Write the discount formula into spreadsheet as shown below and then copy
across 20 columns (headed 1% through 20%) and down 50 rows (headed 1 to 50).
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